Peter Hargreaves, co-founder of Hargreaves Lansdown, has claimed in an interview that fund manager Neil Woodford "has not been truthful" with the investment platform.
Speaking to The Times, Hargreaves said: "It's annoyed the hell out of me that it would appear he [Woodford] has not been truthful with Hargreaves Lansdown. But it's also annoyed me that they let it go on so long."
Investment Week has previously reported that HL faced criticism for the closeness of its relationship with the fund manager, whose Woodford Equity Income fund was suspended in early June.
HL had continued to back Woodford Investment Management's Equity Income and Income Focus funds despite a period of underperformance, with HL only removing the Equity Income fund from its Wealth 50 buy list after its suspension.
Hargreaves, who co-founded the company with Stephen Lansdown, remains a shareholder of HL but is no longer a director.
In another blow to Woodford, mattress company Eve Sleep, in which he has a 31% stake according to a report in The Guardian on Friday (20 September), reported revised revenue of £25m to £27m for the year, down from £34m.
The business also confirmed it had cancelled merger talks with online mattress retailer, Simba.